Uganda Awards Another Dam Project to Chinese Company

Related Articles

KAMPALA— China's influence in Uganda is growing, with two dam contracts recently awarded to Chinese companies, offers of cheap credit and even a possible deal to buy the debts of Ugandan MPs. But some rights groups worry that it could come at the expense of the country’s independence.

The Ugandan government, lured by the promise of cheap credit and heavy investment, is turning more and more toward China.

Chinese firms have been pouring into the country. According to the Chinese Embassy here, 45 new companies set up shop in Uganda just last year. And state-owned Chinese companies were recently awarded contracts to build Uganda’s two newest hydroelectric dams. The largest is estimated to cost almost one and a half billion dollars.

Chinese investment has been creating jobs in Uganda, and the new dams should help the country meet the energy demands of its fast-growing population, says Minister of State for Energy Simon D’Ujanga. Plus, he adds, cheap loans sweeten the deal.

“We have a bilateral arrangement with the Chinese government for cheap capital. It is a concession which is at a very low rate, and therefore we take advantage of that,” said D’Ujanga.

D’Ujanga acknowledges that low interest rates are not the only thing that makes China an attractive business partner. “If anything, the Chinese government is more liberal than the other lenders. When they come, we discuss strictly business, and that’s all. They don’t start asking many questions which are not related to the business,” D’Ujanga noted.

The questions China does not ask are about governance and human rights. Godber Tumushabe is director of the Kampala-based Advocates Coalition for Development and Environment. He said this no-strings-attached approach is one of the main reasons why many African leaders are seeking Chinese investment.

“They don’t want to be held accountable to any standard in terms of good governance, in terms of human rights, in terms of even economic governance. Because some of these regimes, they are patronage regimes, they are client regimes, and therefore they don’t want to be held to any standard that Western countries normally would demand,” Tumushabe said.

China’s involvement with the Ugandan government has recently taken a more personal turn. Last week, lawmakers said that a Chinese firm is negotiating a deal to buy off the debts of Ugandan parliamentarians.

Tumushabe explains that many Ugandan lawmakers overspend during their campaigns, and end up in debt to other politicians. If the Chinese deal goes through, he said, it would compromise them even further.

“It’s really more or less like selling away the other aspect of your independence. All of a sudden, you have to probably look favorably on some of the transactions that China is doing here.”

According to reports in the local media, Ugandan President Yoweri Museveni opposes the deal. Tumushabe said it is the country’s very sovereignty that is at stake. “I don’t think that a state that claims to be sovereign, like all these African states normally want to claim, should be in the business of allowing another state to come and pay off the debts of your elected leaders. I think that’s a responsibility that the state should have to its citizens," said Tumushabe. "To make sure that the elected leaders do not mortgage themselves to another country.”

But, he adds, Uganda’s behavior is not unusual. Governments across the continent have been turning to China to avoid having to make the changes that a growing middle class demands, he said.

“The presence of China gives a lease on life for regimes across the world, and more specifically in Africa - regimes that are not yet ready to reform, both in terms of economic reforms but also in terms of governance reforms,” said Tumushabe.

D’Ujanga insists that the Ugandan government knows what it is doing when it comes to China, and is not sacrificing its independence. “Not at all. This is not the first time we are dealing with the Chinese people. We have dealt with them before, and we can predict them,” he stated.

But Tumushabe warns that too few politicians weigh the real costs of cheap Chinese credit. When it comes to international relations, he says, there is no such thing as a blank check.

U.S. Secretary of State John Kerry has told his Russian counterpart, Sergei Lavrov, that his country could face further consequences to what he called its “already strained economy” if Moscow does not fully comply with a cease-fire in Ukraine. The two met, on Monday, on the sidelines of a U.N. Human Rights Council meeting in Geneva, where Kerry outlined human rights violations in Russian-annexed Crimea and eastern Ukraine. VOA State Department correspondent Pam Dockins reports from Geneva.

Video

U.S. Secretary of State John Kerry has told his Russian counterpart, Sergei Lavrov, that his country could face further consequences to what he called its “already strained economy” if Moscow does not fully comply with a cease-fire in Ukraine. The two met, on Monday, on the sidelines of a U.N. Human Rights Council meeting in Geneva, where Kerry outlined human rights violations in Russian-annexed Crimea and eastern Ukraine. VOA State Department correspondent Pam Dockins reports from Geneva.

Video

Diagnosing infections such as HIV requires expensive clinical tests, making the procedure too costly for many poor patients or those living in remote areas. But a new technology called lab-on-a-chip may make the tests more accessible to many. VOA’s George Putic reports.

Video

Afghan officials have expressed concern over reports of a crackdown on Afghan refugees in Pakistan following the Peshawar school attack in December. Reports of mass arrests and police harassment coupled with fear of an uncertain future are making life difficult for a population that fled its homeland to escape war. VOA’s Ayesha Tanzeem reports from Islamabad.

Video

Despite the ongoing ceasefire in Ukraine, soldiers in the city of Mariupol fear that pro-Russian separatists may be getting ready to attack. The separatists must take or encircle the city if they wish to gain land access to Crimea, which was annexed by Russia early last year. But Ukrainian forces, many of them volunteers, say they are determined to defend it. Patrick Wells reports from Mariupol.

Video

As low oil prices and Western sanctions force Russia's economy into recession, thousands of Moscow restaurants are expected to close their doors. Restaurant owners face rents tied to foreign currency, while rising food prices mean Russians are spending less when they dine out. One entrepreneur in Moscow has started a dinner kit delivery service for those who want to cook at home to save money but not skimp on quality. VOA's Daniel Schearf reports.

Video

The United States and Cuba say they have made progress in the second round of talks on restoring diplomatic relations more than 50 years after breaking off ties. Delegations from both sides met in Washington on Friday to work on opening embassies in Havana and Washington and iron out key obstacles to historic change. VOA’s Mary Alice Salinas reports from the State Department.

Video

One after another, presumptive Republican presidential contenders auditioned for conservative support this week at the Conservative Political Action Conference held outside Washington. The rhetoric was tough as a large field of potential candidates tried to woo conservative support with red-meat attacks on President Barack Obama and Democrats in Congress. VOA Political Columnist Jim Malone takes a look.

Video

New Yorkers take pride in setting world trends — in fashion, the arts and fine dining. The city’s famous biannual Restaurant Week plays a significant role in a booming tourism industry that sustains 359,000 jobs and generates $61 billion in yearly revenue. VOA's Ramon Taylor reports.

Video

Issues like the Keystone XL pipeline, fracking and instability in the Middle East are driving debate in the U.S. about making America energy independent. Recently, the American Energy Innovation Council urged Congress and the White House to make expanded energy research a priority. One beneficiary of increased energy spending would be the Brookhaven National Lab, where clean, renewable, efficient energy is the goal. VOA's Bernard Shusman reports.

Video

There has been a surge of interest in the American civil rights movement of the 1950s and '60s, thanks in part to the Hollywood motion picture "Selma." Five decades later, communities in the South are embracing the dark chapters of their past with hopes of luring tourism dollars. VOA's Chris Simkins reports.

Video

With the end of summer in the Southern hemisphere, the Antarctic research season is over. Scientists from Northern Illinois University are back in their laboratory after a 3-month expedition on the Ross Ice Shelf, the world’s largest floating ice sheet. As VOA’s Rosanne Skirble reports, they hope to find clues to explain the dynamics of the rapidly melting ice and its impact on sea level rise.

Video

A Lao dam project on a section of the Mekong River is drawing opposition from local fishermen, international environmental groups and neighboring countries. VOA's Say Mony visited the region to investigate the concerns. Colin Lovett narrates.